CENVAT Credit Admissibility on Invoices Raised for Removal of Inputs 'as such' - Board to Decide (See 'DDT')

Commission Paid to Directors of Companies - No Service Tax - Board Clarifies (See 'DDT')

35 Officers of CBEC conferred Presidential Awards; MoS(R) calls for fine balance between facilitation and enforcement;

TRAI releases Paper on 'Licensing issues related to Next Generation Networks';

Former President R Venkatraman passes away;

State Governments have borrowed a net amount of Rs.46,327 crore up to January 23, 2009;

CBDT conducts DPC for promotion to CIT-level; Last name covered is Mr Vivek Mishra;

Initial hope that the crisis could be contained in the financial sector has been belied ;

Last bastion of LTTE caves in; Pranab Mukherjee to rush to Lanka today;

RBI Review sees consolidating slowdown in economy; more steps likely;

Chhatisgarh Naxals set on fire 28 trucks of contractor engaged in road construction;

Health bulletin on PM: Dr Singh recovering fast; takes semi-solid food ;

ddt 27 Jan.pdf

Definitive Anti Dumping Duty Imposed on DVDs;

top guest.pdf

Macro-management of Indian economy in 2009 - A few thoughts to meet the challenge!

mbuzz0089.pdf

35 Officers of CBEC conferred Presidential Awards; MoS(R) calls for fine balance between facilitation and enforcement;

mbuzz0088.pdf

TRAI releases Paper on 'Licensing issues related to Next Generation Networks';

mbuzz0087.pdf

Repo rates unchanged; RBI promises continued vigil – Quarterly Review;

2009-TIOL-43-HC-MUM-IT.pdf

DIT , Mumbai Vs M/s NGC Network Asia LLC (Dated: January 14, 2009)

Income tax - Interest u/s 234B - Does liability to pay interest arise when the assessee is not liable to pay advance tax? - held, when a duty is cast on the payer to pay the tax at source, on failure, no interest can be imposed on the payee-assessee - Revenue's appeal dismissed:BOMBAY HIGH COURT;

2009-TIOL-42-HC-AHM-IT.pdf

Amit Suresh Bhatnagar Vs ITO (Dated: October 21, 2008)

Income Tax - Sec 179 - Revenue initiates recovery against the Directors of a private company - Held, in the light of settled where it was held that before taking action u/s 179 against the Director or Directors of a private Company, Revenue has to first establish that such a Director or Directors were responsible for the conduct of the business during the previous year in relation to which the liability exists. Revenue has also to establish that it has taken effective steps to recover the outstanding dues from the Company and has not been able to recover the entire outstanding liability - Order u/s 179 quashed :GUJARAT HIGH COURT;

2009-TIOL-65-ITAT-DEL.pdf + SAIL story.pdf

Steel Authority Of India Ltd Vs ITO, New Delhi (Dated : October 31, 2008)

Income tax - India-UK DTAA - assessee is a steel manufacturer - signs agreement with UK-based consultant to impart training to its engineers and managers in technical and managerial modules - seeks Revenue's permission to remit payment on which Revenue takes a view that TDS u/s 195 is to be deducted - CIT(A) agrees - held, the agreement makes it clear that the training imparted is technical in nature and the fee to be paid is fee for technical services taxable as per Explanation 2 of Sec 9(1)(vii) of the I-T Act and also under Article 13(2) of the DTAA which permits source jurisdiction to tax such income - since the fee has arisen in India it is taxable u/s 13(7) of DTAA - assessee's appeal dismissed:DELHI ITAT;

2009-TIOL-64-ITAT-DEL.pdf

Alpha Toyo Ltd Vs ACIT, Faridabad (Dated : October 08, 2008)

Income tax – Appellant declares a gross profit of 37.8 % of the turnover – AO estimates the gross profit ratio at 46.38% on the basis of the gross profit ratio estimated for the A.Y. 1993-94 – CIT (A) confirms the gross profit at 39% against 46.38% estimated by the AO stating that no discrepancy was found in inventory recorded, books of accounts were not rejected, nothing was brought on record by the AO for low G.P. and estimation of G.P. only on the basis of earlier year is not correct – Held that as no defect was found, the appellant's appeal is allowed and department's appeal is dismissed.:DELHI ITAT;

2009-TIOL-63-ITAT-BANG.pdf

DCIT, Bangalore Vs M/s Rashtrotthana Madranalaya Trust (Dated : September 5, 2008)

Income Tax Act – Section 11 & 12 – Charitable Trust – Accumulation of Income - AO denied assessee its claim for exemption of its income under section 11 mainly for two reasons i.e its printing business is not trust property and that funds have been accumulated but not applied for the objects of the trust – Held, charity can be done either with money or money's value for which also money or liquid funds are needed. The funds, whatever little available with assessee was either accumulated or spent in the administration of the press. It is not the case of the Department that the funds were applied or spent on non-charitable purposes. On the facts of the case, it is not disputed that the assessee owned the printing press used the income from printing business in the business of printing which exists solely for doing charitable work and unspent money was accumulated and actually spent in AY 2004-05 and onwards.

Held therefore, that so long as the assessee spends the accumulated finds in the future years, towards the objects for which it is established, it would satisfy the conditions of Sec. 11 of the Act and it is, accordingly, entitled to the exemption.:BANGALORE ITAT;

SERVICE TAX SECTION

st_commission.pdf

Service Tax – clarification regarding ‘Commission' covered under ‘Business Auxiliary Service' – reg.

CASE LAWS

2009-TIOL-163-CESTAT-DEL.pdf

M/s H K Associates Vs CCE, Chandigarh (Dated: December 31, 2008)

A case of missed opportunities for Revenue, says Tribunal while setting aside Service tax demand of Rs.60 lakhs – Appellant is not an advertising agency but only receives commission on sales – Tribunal.

++ Submission that the payment of commission at the rate of 2%/3% for the purpose of a simple assignment of collecting the cheques is very much the higher side cannot lead to a conclusion that the payment is for a different purposes. To make such an allegation or to come to such a conclusion, investigation should have been conducted. None of the dealers have been contacted by the investigating officers to find out whether the services as envisaged in the agreement were rendered by M/s. H.K. Associates or not and also whether any other services were rendered by them. This appears to be a case of missed opportunities.

++ The issue to be decided is whether M/s. H.K. Associates have rendered the services of advertising agency to KBPL. It is not disputed that actual work of painting on the walls/advertisements were undertaken by various parties to whom M/s. H.K. Associates have paid the amount as mentioned earlier. No evidence have been relied upon to hold that M/s. H.K. Associates have conceived, designed, prepared the advertisements in question.

++ The amounts paid to M/s. H.K. Associates have been accounted under the category of advertisement and sales promotion expenses by KBPL. A portion of the sum so received was spent on advertisement by H.K. Associates. These facts alone can not lead to an inference that M/s. H.K. Associates have rendered the services as advertising agency and the entire amount of about Rs.9 crores received from KBPL has to be treated as representing payment for rendering advertising services.

++ Whether commission of sales could be treated as advertisement and sales promotion expenses is a debatable point. However, this is not an issue to be decided by us. It suffices to say that the terms of the agreement produced and the entries in the balance sheets of manufacturing company and those of M/s. H.K. Associates support the claim by the learned advocate for the parties. The balance sheet of M/s. H.K. Associates also mentions these amounts only as commission on sales.

Appeal of M/s H.K.Associates allowed with consequential relief. As for the Revenue appeals seeking enhancement/imposition of penalties, there was no question of looking into the same as the alleged service tax demand itself was set aside. Consequently, Revenue appeals were rejected.:DELHI CESTAT;

2009-TIOL-162-CESTAT-BANG.pdf

M/s HI-TECH Thermo Coatings Vs CCE, Kochi (Dated:August 25, 2008)

Service tax – Activity of powder coating on material supplied by customers and collection of job charges – Abatement of value of goods and materials sold to customer available – Matter remanded to grant benefit of Notification 8/2005:BANGALORE CESTAT;

2009-TIOL-161-CESTAT-MAD.pdf

M/s Santhi Casting Works Vs CCE, Coimbatore (Dated: November 27, 2008)

Service Tax – Tax amount paid voluntarily along with interest – proceedings to be treated as concluded under Section 73(3) of the Finance Act' 1994.:DELHI CESTAT;

CENTRAL EXCISE SECTION

chairman.pdf

Bad SCNs and Adjudication Orders - CBEC Chairman wants Field to take note of SC Order;

file_267.pdf

Cenvat credit admissibility on invoices raised for removal of inputs as such-regarding;

CASE LAWS

2009-TIOL-160-CESTAT-MAD.pdf + Tamilnadu Asbestos story.pdf

M/s Tamilnadu Asbestos (Pipes) Vs CCE, Trichy (Dated: November 27, 2008)

Central Excise – Section 11D – limitation – amendment to Section 11D with effect from 20.9.1991 does not alter the settled position on limitation – demand beyond five years is barred by limitation – time limit under Section 11 A is also applicable for demands under Section 11D:CHENNAI CESTAT;

2009-TIOL-159-CESTAT-MUM.pdf

Sarla Polyester Ltd Vs CCE, Daman (Dated: October 17, 2008)

Central Excise – Duty liability for clearances against CT-3 rests on the consignor and not the consignee – Impugned order passed after Tribunal expressed its view on the matter – Contrary view will unsettle the law laid down in this regard – No merit in application for modification of stay order – Time for pre-deposit extended by eight weeks:MUMBAI CESTAT;

2009-TIOL-158-CESTAT-MUM.pdf

M/s BD Industries Vs CCE, Mumbai-II (Dated: September 30, 2008)

Central Excise – SSI exemption benefit available when making own branded goods without availing credit and paying duty on branded goods of others – Pre-deposit waived and recovery stayed :MUMBAI CESTAT;

CUSTOMS SECTION

CIRCULAR

instruction.pdf

Ban on import of toys from China by DGFT – reg.;

dgft08cir056.pd

Claim of free transferability of duty credit scrip benefits under Chapter 3 of FTP, clarification regarding eligibility of exports by EOU there-under

CASE LAWS

2009-TIOL-157-CESTAT-MUM.pdf

CC, Mumbai Vs M/s Viral Filaments Ltd (Dated: October 23, 2008)

Customs – Diversion of duty free imports under QBAL – Commissioner's order travels beyond the scope of SCN and suffers from various infirmities – Matter remanded for de novo with directions to call for comments from Department on various submissions made by respondents – To provide opportunity to both department and assessee before deciding the case :MUMBAI CESTAT;